MicroStrategy, formerly known as MSTR, acquired nearly $765 million of Bitcoin last week

According to a May 19 announcement, Strategy acquired 7,390 BTC for about $764.9 million at an average price just under $103500.

The article discusses Strategy's acquisition of nearly $765 million worth of Bitcoin last week as the company faced a class-action lawsuit.

According to a May 19 announcement by Strategy, the company acquired 7,390 BTC for approximately $764.9 million at an average price of just under $103,500.

The company's Bitcoin yield year-to-date was 16.3%.

Strategy executive chairman Michael Saylor made a hint at the purchase in an X post on May 18.

The company was also the recipient of a class-action lawsuit, which was filed in the US District Court for the Eastern District of Virginia, according to a May 19 filing with the US Securities and Exchange Commission (SEC).

The suit accuses Strategy officials of failing to represent the nature of Bitcoin investments accurately.

As of May 18, Strategy holds 576,230 BTC, which it acquired for about $40.2 billion at an average price of $69,726 per coin.

At current prices, the company's total holdings are valued at more than $59.2 billion, presenting an unrealized gain of $19.2 billion, or 47%.

According to CoinMarketCap data, Bitcoin traded at around $102,615 at the time of writing, presenting an increase of 20.3% over the last month.

Strategy hit with a lawsuit

In a recent filing with the SEC, the firm wrote that "a purported class-action lawsuit was filed in the US District Court for the Eastern District of Virginia" against the company's executives.

The lawsuit, filed by a group of Strategy investors, claims that the company's officials made "false and/or misleading statements and/or failed to disclose material facts" about the company's business and financial condition.

The suit names Strategy chairman Michael Saylor, president and CEO Phong Le, and executive vice president and chief financial officer Andrew Kang as defendants.

The plaintiffs are accusing the officials of violations of Section 10(b) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and Rule 10b-5 thereunder, and Section 20(a) of the Exchange Act.

The filing states: "Defendants' statements in the relevant Strategy proxy statements and/or the relevant Strategy 10-K and 10-Q filings for the periods from the first quarter of 2020 through the third quarter of 2023, filed with the SEC, concerning the risks of investing in Strategy common stock and the nature of Strategy's Bitcoin investments, were false and misleading when made, and/or failed to disclose material facts, in violation of Sections 9, 12, and 17(a) of the Securities Act [15 U.S.C. §§77i, 77l, 77q(a)]."

The plaintiffs are seeking monetary damages and injunctive and/or other equitable relief.

They are also requesting that the court order the defendants to pay prejudgment interest on any monetary damages awarded, multiple damages for any willful violations of the federal securities laws, and reimburse the plaintiffs' attorneys' fees, costs, and expenses.

0xngmi, a pseudonymous developer at decentralized finance data platform DefiLlama, posted on May 19 that he believes the lawsuit has no basis.

He explained that the suit "seems to be people complaining that [Strategy] understated how much money it could lose if BTC went down."

However, he argued that the risks were not understated, stating, "The complaint seems to be arguing that they should have disclosed the Bitcoin price at which it would become inconvenient to continue holding."

He added: "This is absurd, as the complaint itself says that they disclosed the total gains and losses from the investment in the footnotes of their financial statements."

Corporate Bitcoin treasury trend grows

Strategy's Bitcoin treasury strategy has inspired other companies to follow in its footsteps.

Last week, shares of luxury watchmaker Top Win surged more than 60% in premarket trading after the company said it would adopt a Bitcoin accumulation strategy and had changed its name to AsiaStrategy.

AsiaStrategy said that to implement its plan it is partnering with Sora Ventures, which previously partnered with Metaplanet in 2024 to create Japan's first corporate Bitcoin treasury.

Metaplanet now holds more Bitcoin than El Salvador.

Also last week, a Bahrain-based listed catering company with a $24.2 million market cap adopted a Bitcoin treasury strategy in partnership with investment firm 10X Capital.

The company, Food Tech Hospitality, which provides catering services for commercial and industrial companies, announced its pivot to a Bitcoin treasury in a filing with the US Securities